16. Which statement is not true regarding the Capital Market Line (CML)? a. The CML is the line from the risk free rate through the market portfolio. b. The CML is the best attainable capital allocation line. c. The CML is also called the security market line. d. The CML always has a positive slope. e. Not all of these statements are true.

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.